II. REPORTS FROM COMMITTEES

A. Long-Range Planning Committee

Report from Trustee Eskew

Trustee Eskew began by reiterating the
committee’s mission to look at long-term trends, needs, challenges and issues, and relate
future university policies to them. He said the committee would also consider changes in the
basic structure and organization of the university.

He said the committee heard excellent presentations by Vice President Patrick
O’Meara on Indiana University’s strategic plan for international relations, and by Vice
President Ora Pescovitz on the research administration at IU.

B. Joint Meeting of the Facilities and Finance & Audit Committees

Report from Trustee Shoulders

Patrick Shoulders reported that trustees
received an update on the IU Bloomington housing master plan from Vice President Clapacs,
MaryFrances McCourt, Neil Theobald, and Roger Thompson on a housing master plan update.

Report of Action Item: Trustee Shoulders said that by unanimous vote, trustees
at the joint meeting approved a motion that had been duly moved and seconded to approve the
master plan.

C. Facilities Committee

Report from Trustee Cast

Trustee Cast said the committee began with a
brief executive session before convening the public portion of the meeting.

Action Item: Approval is requested for a resolution authorizing
the Facilities Committee of the Board of Trustees to approve certain projects and easements
on behalf of said trustees.

Resolution of The Trustees of Indiana University Authorizing the
Facilities Committee of said Trustees to Approve Certain Projects and Easements on
behalf of said Trustees

Whereas, The Trustees of Indiana University, a body politic organized and
existing under the laws of the State of Indiana (the “Trustees”), is charged with operating
the institution of higher education known as Indiana University (the “University”) and is
authorized under the laws of the State of Indiana, particularly: IC 21-33-3-5, to construct
buildings or facilities, and purchase or lease-purchase land, buildings, or facilities; IC
21-33-3-6, to engage in repair and rehabilitation projects; IC 21-33-3-7, to lease
buildings or facilities; and IC 21-36-3-3, to sell or convey real estate title.

Whereas, the Trustees have heretofore duly established and constituted the
Facilities Committee to act on behalf of the Trustees to review and approve such projects
and make recommendations to the Trustees; and

Whereas, it may become necessary from time to time for the Facilities
Committee to conduct the business of the University and approve such projects prior to a
regularly scheduled meeting of the Trustees; and

Whereas, the Trustees now desire to authorize the President or Vice
President and Chief Administrative Officer to submit such projects as they may determine to
be in the best interests of the University or as otherwise as may be required by applicable
statute to the Facilities Committee; and

Whereas, the Trustees now desire to authorize the Facilities Committee to
approve such projects on behalf of the Trustees and in their full authority and stead.

Now Therefore, Be it Resolved by The Trustees of Indiana University as
follows:

1. The President or Vice President and Chief Administrative Officer are
hereby authorized to prepare and submit to the Facilities Committee of the Trustees such
projects as they may determine require the approval of the Trustees pursuant to
applicable statutes for consideration by the Facilities Committee.

2. The Trustees hereby authorize the Facilities Committee to approve
such projects as may come before them in a meeting duly called for such purpose in the
same manner and with the same authority as the Trustees, for and on behalf of the
Trustees. The authority granted to the Facilities Committee is based on the powers
granted under the laws of the State of Indiana to the Trustees pursuant to: IC 21-33-3-5,
to construct buildings or facilities, and purchase or lease-purchase land, buildings, or
facilities; IC 21-33-3-6, to engage in a repair and rehabilitation project; IC 21-33-3-7,
to lease buildings or facilities; and IC 21-36-3-3, to sell or convey real estate
title.

3. The Facilities Committee shall report all meetings at which it makes
approvals for and on behalf of the Trustees as provided for herein at the next regularly
scheduled meeting of the Trustees.

4. It is the intention of the Trustees hereby to give the actions of the Facilities
Committee, in the absence of a regular meeting of the Trustees, the same weight and
authority as the Trustees and that such approval by the Facilities Committee shall be
considered for all purposes as the approval of the Trustees.

Approved and adopted this seventh day of December, 2007.

Trustee Cast said the resolution was needed to handle items that come up
between regular Board of Trustees meetings, given the reduction in the number of those
meetings.

Unanimously approved on a motion duly made and seconded.

Project Approvals

IUB – Classroom Building

Action item: Approval of the Board is requested to
proceed with the design-build process and design for the construction of the new Classroom
Building on the Bloomington Campus. The facility will be located at a site to be chosen on
the south side of Third Street. The building will provide classroom and support space for
International Studies and other academic programs. Appropriate State approvals will be
requested.

Unanimously approved on a motion duly made and seconded

IUPUI – Eugene and Marilyn Glick Eye Institute

Action item: Approval of the Board is requested to
proceed with the construction of the Eugene and Marilyn Glick Eye Institute on the IUPUI
Campus. The new campus structure will be approximately 50% clinical facility and 50%
research facility. The new space will accommodate patient exam, treatment and surgery
suites as well as basic research, clinical research and teaching areas. It will also house
all essential administrative and support functions necessary to support these programs.
Funded by a gift from the Eugene and Marilyn Glick Foundation Corporation, the project is
estimated to cost $20,000,000. Appropriate State approvals will be requested.

Action item: Approval of the Board is requested to
proceed with the construction of a new cancer center on the South Bend campus. This
facility will be a new building, of 55,000 gross square feet, attached on all levels to
the existing Raclin-Carmichael Hall. The building will house cancer research programs for
both the Indiana University School of Medicine at South Bend and the University of Notre
Dame. The new addition will primarily accommodate research labs, lab support and related
offices. The cancer center will have its own entrance, and the architectural character of
the building will be consistent with the existing Raclin-Carmichael Hall. The project is
estimated to cost $20,000,000 with $10,000,000 in funding from the Indiana University
School of Medicine and $10,000,000 from the University of Notre Dame. Appropriate State
approvals will be requested.

Unanimously approved on a motion duly made and seconded

Consent Items

IUB – Forest Quadrangle, B Building – Building Systems Upgrade

Action Item: Approval of the Board is requested to
proceed with a project to complete the air conditioning and upgrade of several building
systems for Forest Quadrangle’s B Building, located on the Bloomington Campus. In
addition to completion of the air conditioning system, this work includes replacement of
the domestic hot water system, and minor asbestos abatement. The project will also add a
wireless network system for both Building B and Tower A. Estimated to cost $4,400,000,
the project is funded by Residential Programs and Services Building Repair Reserves
($4,094,000) and University Information Technology Services Auxiliary Reserves
($306,000). Appropriate State approvals will be requested.

Unanimously approved on a motion duly made and seconded

IUB - McNutt Student Access Card Project

Action item: Approval of the Board is requested to
update the present 44 year-old student room locks and hardware system to a
state-of-the-art card access system at McNutt Quad. The project would allow students to
use their student Identification card as a swipe card to gain access to certain parts of
the building including their student room. The project includes the installation of
security cameras in strategic areas and will provide optimal security for the building.
Estimated to cost $1,500,000, the project is funded by Residential Programs and
Services. Appropriate State Approvals will be requested.

Unanimously approved on a motion duly made and seconded

IUB - Parking Lots and Other Upgrades

Action item: Approval of the Board is requested to proceed with
a project to upgrade various parking areas and complete other general work on the
Bloomington Campus.

4th Street Parking Lot Expansion – At the northeast corner
of 4th and Dunn, a series of paved parking areas encompass the space between the alley
to the north and commercial buildings to the east. These distinct areas will be combined
into one lot providing better circulation and a net increase of 4-5 spaces. Existing
vegetation will be eliminated and new deciduous shade trees will be introduced.

Chilled Water Plant (West Lot & East Drainage) –
This existing gravel lot will be paved and lighted. The drainage at the east end of the
Chilled Water Plant will also be addressed with excavation, piping of existing runoff,
reconstruction of failed pavement base, and repaving.

Law Lane, Fee to Jordan – The curb in this area will be
reconstructed and adequate drainage structures added.

Fischers Court Reconstruction – A new concrete pavement
profile will be installed in the cul-de-sac and drive area. New concrete curbs will also
be constructed.

Estimated to cost $956,449, the project is funded by Parking Operations.

Unanimously approved on a motion duly made and seconded

Real Estate

Consent Item

IUS – Approve and authorize granting of gas line easement to provide natural
gas service to Indiana University Southeast Student Housing Units

Action Item: Approval is requested for the authority
to grant an easement on the Indiana University Southeast campus to Indiana Gas Company,
Inc., and Indiana Corporation d/b/a Vectren Energy Delivery of Indiana Inc. The easement
is for installation, operation and maintenance of a natural gas pipeline line in support
of the Student Housing Unit construction project on the Indiana University Southeast
Campus in New Albany, Indiana.

Unanimously approved on a motion duly made and seconded

Trustee Cast said the committee discussed two items: the condition of the IU
Bloomington tree canopy, and the IUB bike path. He said the committee was shocked to learn the
canopy had been endangered by disease and age. The board will receive a report on a new
planting program to cover the entire campus. The committee will also receive a report on the
bike path in the future.

C. Academic Affairs Committee

Report from Trustee Talbot

Trustee Talbot said the committee’s first
order of business was an update on the Commitment to Excellence (CTE). She called the report
“amazing,” and urged trustees to peruse the CTE documents that had been distributed. She
said this was the final report the board would receive on CTE budgets and expenditures. The
permanent allocations have been made and the faculty salaries and other ongoing expenditures
have been integrated into the general fund budgets. No further reports on specific budgets
or expenditures will be made, however, the return of our investment to the CTE program will
continue, and the board will very likely hear more stories about the academic excellence
that these programs have for Indiana University statewide.

Action Item: Approval is requested for the following new
degrees:

IUB – Ph.D. African American and African Diaspora Studies

IUK – B.A. in Fine Arts

IUPUI – Ph.D. Biostatistics

IUPUI – Ph.D. in Health and Rehabilitation Sciences

IUPUI – M.A. in Public Relations

Unanimously approved on a motion duly made and seconded.

D. External Relations Committee

Report from Trustee Shoulders

Trustee Shoulders said the committee first
heard an insightful presentation from Mark Bruhn and Kirk White on the IU Critical Incident
Communications plan and the IU Notify Project. The mission of Critical Incident
Communications planning is to protect life and property through timely and accurate
communications and to protect the image, reputation and financial stability of IU. He said
committee members were very comfortable with the scope of the plan.

The committee also heard from Bill Stephan, who provided the committee with
an overview of IU’s new strategy for engagement and economic development entitled “Innovate
Indiana.” He said IU was well-positioned to implement Innovate Indiana thanks to
developments such as the incubator project at IUB, the emergency technology center at IUPUI,
collaborations with Purdue, and joint ventures with Clarian, to mention a few.

E. Finance and Audit Committee

Report from Trustee Reilly

The committee met today, all members present.
Members received the financial report of the fiscal year presented by Kathleen McNeely and
Joan Hagan of IU, and Jan Correll, who is retiring from the State Board of Accounts after
many years. Reilly said the net assets of the organization had grown $175 million and that
IU received an unqualified opinion. Ms. McNeely briefly noted three items that were
discussed at the exit conference but for which IU did not receive a letter. They included
hourly bonuses, which had been paid without an approved policy; non-compliance with a
particular contract; and the university’s financial relationships with MPRI, the Midwest
Proton Research Institute. The closing comments, which were part of Ms. Correll’s farewell,
were a real tribute to our financial staff. Normally they are among one of the first to
close. This year they were the first to close of all the universities which indicates they
are on top of their books and she paid tribute to the fact that they utilize the most modern
techniques and are quickest to adopt the new practices that are required by the standards
boards. In all, that was a very positive report in all regards.

Action Item: Approval is requested for the 2008-09 Housing Rates for
IUPUI.

Ball Residence Hall - 302 Beds

per semester

Room Type

2007-08 Current Rates

2008-09 Proposed Rates

Semester Increase

Proposed % Increase

Single Room

$1,575

$1,800

$225

14.3%

Double Room

$1,350

$1,550

$200

14.8%

Double with Bath

$1,750

$2,000

$250

14.3%

Triple Room

$1,250

$1,400

$150

12.0%

Graduate Townhomes - 24 Beds

per month

Room Type

2007-08 Current Rates

2008-09 Proposed Rates

Monthly Decrease

Proposed % Decrease

One Bedroom

$775

$650

-($125)

-16.1%

Two Bedroom

$895

$625

-($270)

-30.2%

Campus Apartments - 740 Beds

per month

Room Type

2007-08 Current Rates

2008-09 Proposed Rates

Monthly Increase

Proposed % Increase

One Bedroom

$845

$865

$20

2.4%

Two Bedroom

$735

$755

$20

2.7%

Four Bedroom

$625

$640

$15

2.4%

Trustee Reilly said that IUPUI Vice Chancellor Karen Whitney reported
occupancy at 100% and that she was requesting an overall increase of 3.16% in the rates for
the next fiscal year. They have a combination of regular dorm rooms, suites and apartments.
A motion was made and unanimously passed to raise the housing rates overall by a 3.16%
average rate increase and approval by the full board is recommended.

Unanimously approved on a motion duly made and seconded.

Trustee Reilly said the final item of business in the open session was the
presentation by Neil Theobald and Mary Frances McCourt and Kathleen McNeely on financial
planning over the next five and 10 years. He said the process will incorporate financial
capabilities, IU’s returns, its resolves and it will measure a number of things that are not
normally noted in financial statements, such as student issues, tuitions, number of students
and so forth. One of the goals is to identify the trends and model the finances of the
institution as it prepares for a considerable expansion of its physical assets, as discussed
by the president at his inauguration. At the present time we are a much more conservatively
financed operation than most major state universities so that we are starting from a solid
economic foundation. We then adjourned into executive session.

F. REPORT FROM STUDENT TRUSTEE

Report from Trustee King

A.D. King reminded everyone that final exams
loomed large in the coming weeks and wished all students good luck.